Lenders are quite strict in the current climate in providing bridging finance. Not all mortgage providers provide bridging facilities

Bridging finance is only available when there is an unconditional contract in place for the sale of your existing property.

It is important to clarify the position in relation to the availability of bridging finance at an early stage in the mortgage process.Your solicitor has an important role to play in ensuring the timing of the sale of your own house and the purchase of your new house are to your advantage or certainly not to your disadvantage.

If you are in a chain, where you are buying a home at the same time as selling a home, it's possible that you'll be put in the situation where you need to complete your purchase, but for some reason the funds from your buyer are not present to complete the transaction. At this time, the vendor may threaten to pull out unless you complete at a certain date. Without the proceeds from your home's sale you will run into difficulty.

The amounts are borrowed generally for periods from a week to up to six months.Rates are typically priced at home loan rate plus 2%.This can be a very expensive business if you are also paying your old mortgage on the house you are selling!

Sometimes it may be necessary to obtain bridging for your 10% deposit for your new home in situations where all your equity for your move is tied up in your existing property. Lenders don't usually have a problem with this provided you have a contract in place for the sale of your house.

If you would like to discuss bridging finance with an advisor please get in touch.